The Renters Next Door: America’s New Generation of Single-Family Residence Renters

Over the past decade, almost all of the growth in America’s households has been driven by renters, especially renters of single-family residences (SFRs).

Owning the stereotypical modest home with a white picket fence was long a hallmark of the suburban society that characterized the second half of the twentieth century (at least in the popular imagination). But the foreclosure crisis triggered by the Great Recession made renters out of millions of former homeowners. Additionally, tight credit and low for-sale inventory in many areas make buying a home today difficult for many, even as demand for the luxuries offered by a single-family residence – more space, (even a sense of) more security, a yard and access to good, suburban schools – remains robust.

As a result, SFR rentals have become an increasingly visible and viable option for millions of families nationwide.

The charts below illustrate some of the trends in the SFR rental market, and compare the residents of SFR rentals with residents of owner-occupied SFRs and tenants in more typical apartments[1]. Compared to SFR owners, SFR renters tend to be younger, less-affluent families.

[1] The data presented above rely on Zillow analysis of U.S. Census Bureau data from the American Community Survey and March Current Population Survey made available by the University of Minnesota, IPUMS-USA.